The Cycle to Work Scheme with On Your Bike

At On Your Bike, we make getting a new bike through the Cycle to Work Scheme simple, stress-free and enjoyable. Whether you’re commuting, returning to cycling, or upgrading your ride, the scheme can save you a significant amount on the cost of a new bike and the essential accessories you need to ride with confidence.

What Is the Cycle to Work Scheme?

The Cycle to Work Scheme is a UK government initiative that helps you save money on a new bike and equipment through salary sacrifice. You pay for your package monthly from your gross salary, so you save on Income Tax and National Insurance.

Typical savings:

• Around 32% for basic-rate taxpayers
• Around 42% for higher-rate taxpayers

There is no fixed upper limit set by the government, though employers may apply their own caps.

Who Can Use the Scheme?

You are eligible if you:

• Are aged 16 or over
• Are paid via PAYE
• Do not drop below National Minimum Wage after deductions
• Work for an employer registered with a Cycle to Work provider

Self-employed riders generally cannot use the scheme unless they are directors paid via PAYE.

What Can Be Included?

The scheme covers a wide range of commuter-friendly equipment:

Eligible Items

• Complete adult bikes
• Folding bikes and EAPC-compliant electric bikes
• Helmets and safety gear
• Lights, locks, bells, mudguards
• Panniers, racks and bags
• Cycle clothing suitable for commuting
• Pumps, tools, repair kits, tubes

Not Eligible

• Children’s bikes
• GPS computers or high-end tech not considered essential
• Cycling shoes
• Gift cards
• Individual parts unless included as part of a complete bike

Using the Scheme for E-Bikes

E-bikes are allowed if they meet the UK definition of an EAPC:

• The motor provides assistance only while pedalling
• Maximum continuous power: 250W
• Motor assistance cuts out at 15.5 mph

High-power or throttle-only models do not qualify.

Sale and Discounted Bikes - Important Information

You can use the Cycle to Work Scheme to purchase sale or discounted bikes, including clearance models, but there are important conditions:

• Sale and discounted products purchased through Cycle to Work may be subject to an administration fee.
• Discounts and promotional prices may not apply when using Cycle to Work, depending on the provider and employer rules.
• Sale prices often apply only to standard cash or card purchases.
• Discounts cannot be combined with other offers when purchasing via Cycle to Work.

This ensures compliance with scheme rules and covers the additional administrative work required by employers and scheme providers.

If you’re unsure whether a particular discounted bike is eligible, our team can check it for you.

How Much Will I Save?

Because your payments come out of your gross salary, you save on tax and National Insurance each month. Most riders save between 32% and 42%, depending on their tax bracket and employer policy.

Key Scheme Reminders

• Your salary must stay above National Minimum Wage.
• Bikes must be primarily used for commuting purposes (leisure riding is also allowed).
• Leaving your employer early may require early settlement of your agreement.
• Your employer or provider may restrict certain accessories or add admin fees.

Need Help Choosing or Applying?

We’re here to help every step of the way.
If you’d like advice on choosing a bike, checking eligibility, or completing your application, contact us or visit your nearest On Your Bike store.